Beverage Company

How Profitable Is A Beverage Company? (Updated for 2024)

Pat Walls

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Updated: October 6th, 2024

How Profitable Is A Beverage Company? (Updated for 2024)

So you want to start a beverage company?

And the first question that came to your mind was, “well, are beverage companies actually profitable?”

Especially considering:

You could start a beverage company with as low as $300
Based on our data, beverage companies generate an average of $17.7M per year
You could see gross margins as high as 59% with beverage companies

There’s money to be made. Don’t worry.

But, I don't want to spoil it all. Below we’ll cover everything you need to know when it comes to the profitability of a beverage company.

Let’s dive in!

Is a beverage company profitable?

Yes, a beverage company is generally a profitable business. However, you still need to consider several factors since these things always impact the overall outcome.

For instance, since average revenue is $17.7M per year with an estimated gross margin of 54%, you could expect to recover your investment within 12 months or even less.

But of course, it all comes down to how much you earn compared to the potential revenues of your beverage company.

To determine whether your business is profitable, you should earn more than your expenses in the beginning months. However, while you're in your first month, it can be challenging to know what to expect.

Therefore, you should maintain a record of your monthly expenses and income to determine whether you're meeting your goals. By doing this step, you can see how your beverage company is doing and if any changes or adjustments need to be made to enhance or maintain your efforts.

Is a beverage company worth it?

If you’re wondering if a beverage company is worth it, the answer is a big YES. With beverage companies, you have the potential to earn $17.7M per year (this is based on data reported by real founders).

Further, you could have your initial investment back within months. Simply put, it’s a business worth a shot, especially if you have the resources and make the necessary efforts to achieve or surpass the target.

With a market size of $, it will be possible for you to build something that grows and turns into a flourishing business. As such, it’s the type of business you might want to consider starting.

Of course, you must learn and understand every aspect of running a beverage company to ensure success. Still, as long as you have the initial investment and can endure a few months before your actual gains, this business could be worth it.

You might want to consider reading more specifics about successful beverage companies case studies.

Examples Of Profitable Beverage Companies

Here are a few examples of profitable beverage companies, and a few more details about them:

1. BrüMate ($144M/year)

Dylan Jacob, founder of BruMate, came up with the idea for his unique insulated drinkware brand after a frustrating search for a koozie that worked with his can of choice.
He launched his first product line in November 2016 and has since experienced impressive growth (with over $1.1 million in monthly sales)
Jacob's ability to pivot and adapt his business strategy has been key to his success.

Is it profitable? Yes
What's the gross margin? 59%
How much money it makes: $144M/year
How much did it cost to start: $5K

I Grew A Drinkware Brand To $1.1M/Month At 23 Years Old

BruMate is a successful insulated drinkware brand focused on the adult beverage community, with a flagship product that generated $2.1M in sales in 2017 and is now doing over $1.1M per month in sales, with plans to do $20M this year.

Read this case study

Read by 113,426 founders

2. BeatBox Beverages ($132M/year)

Justin Fenchel, co-founder and CEO of BeatBox Beverages, came up with the idea to create a party version of boxed wine with his friend Brad Schultz. They noticed the popularity of boxed wine like Franzia, but realized people weren't buying it for the taste, but for the affordability and convenience. Inspired by flavored malt beverages, they decided to create a fun flavored version of boxed wine for millennials. After testing their product at parties and receiving positive feedback, they knew they were onto something. With no prior alcohol industry experience, they navigated the complex laws and manufacturing process to bring their unique product to market. Since launching, they have grown their sales to $2.4 million in 2018 and hit $2 million in revenue in 2019.

Is it profitable? Yes
How much money it makes: $132M/year
How much did it cost to start: $150K

How We Launched And Grew A Party Punch Beverage To $3M/Year

BeatBox Beverages, a wine-based cocktail company, grew sales from $700k in 2016 to $2.4m in 2018 and is on track to hit $6m+ in 2019 through a unique and differentiated product, social media marketing, and an appearance on Shark Tank.

Read this case study

Read by 19,269 founders

Learn more about starting a beverage company:

Where to start?

-> How much does it cost to start a beverage company?
-> Pros and cons of a beverage company

Need inspiration?

-> Other beverage company success stories
-> Marketing ideas for a beverage company
-> Beverage company slogans
-> Beverage company names

Other resources

-> Beverage company tips

How much can you make with a beverage company?

With a beverage company, you can make an average of $17.7M revenue per year (based on data reported by real businesses).

You can start with an initial investment as low as $300. Then, with proper knowledge and sustained effort, you could have an ROI (return of investment) within 12 months.

How much does a beverage company make a week?

Based on our data, average weekly revenue for a beverage company ranges around $369K. As such, you could see monthly revenues of $1.48M.

To know if your beverage company achieves the weekly profit target, you need to keep track of the total earnings you get per day. Afterward, you'll want to consider subtracting the expenses you have daily.

Learning your weekly profit can also show whether you're hitting your target goal for your beverage company.

How much do beverage companies owners make?

The income of a beverage company owner can vary depending on various factors such as location, size, competition, and the owner's business skills.

But to give you some idea, the weekly revenue of an established beverage company is about $369K. But this can be lower or higher depending on so many factors - it's almost impossible to say exactly.

While the potential for earning a good income as a beverage company owner exists, success in this field requires a commitment to providing quality products and services and building a strong reputation within the community.

Beverage Company Profit Margins

Generally speaking, a beverage company can expect profit margin of around 54%. Profit margins refer to the percentage of revenue that remains after deducting all expenses associated with running a business. In the case of a beverage company, profit margins can vary depending on various factors, such as the type and quality of products sold, the size of the store, and the level of competition in the area.

However, these figures can vary depending on the pricing strategy, inventory management, and overall efficiency of the business. To maintain healthy profit margins, beverage company owners must focus on managing costs, negotiating favorable supplier terms, and providing high-quality products and services to attract and retain customers. By doing so, beverage company owners can ensure long-term sustainability and profitability for their business.

Beverage company owner salary

The salary of a beverage company owner is an unpredictable figure. It's significantly influenced by numerous factors, including the store's location, its size, and the degree of competition. An owner of a well-established beverage company, in a prime position, might see an average weekly salary around the ballpark of $199K.

But it's worth noting, such numbers aren't always consistent. The earnings can vary wildly, potentially swinging by as much as 80% either way.

Achieving consistent success and maintaining a reliable income stream in this industry requires a deep commitment. It's imperative to offer high-quality products, deliver impeccable customer service, and nurture a trusted bond with the community you serve.

Conclusion

In a nutshell, based on many of our examples, a beverage company may be a promising business to start - but the success of your beverage company mostly depends on your effort and your approach.

If you focus on these, you'll have a much higher chance of a profitable beverage company.

Part of

Starting A Beverage Company: Everything You Need To Know

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